As a real estate investor, when you purchase a piece of real estate, the first decision to consider is the highest and best use of the property. Many investors though immediately think to improve the property as it is currently being used. That may improve the value but if the property was converted or replaced with another type of real estate that is better suited for the area, that would improve the value exponentially.
Research the Area
An investor should make a thorough examination of the area to determine what the area needs. Does it need more housing? Is it lacking restaurants or retail spaces? What about parking? Being well aware with the community’s demands and needs is crucial when determining a property’s highest and best use.
Calculate the Returns
Converting or replacing a piece of real estate is an expensive endeavor. An investor needs to....Read More